EmPower TN An Energy Savings Initiative Application Workshop Application Workshop June 8-11, 2015 1

1

EmPower TN

An Energy Savings Initiative

Application Workshop June 8-11, 2015

2

Agenda

• What is EmPower TN• Guest Speakers: Similar Projects

and Demonstrated Success• Application Process• Application 1x1 assistance

3

EmPower TN: The Opportunity

The State of Tennessee pays an estimated $192.5M annually in utility bills. Significant savings could be achieved with a disciplined focus on energy management, energy efficiency and conservation across all state energy users.

The state has the opportunity to reduce utility spending by 28% or more over the next 8 years.

4

EmPower TN is Gov. Haslam’s enterprise-wide initiative that will:• Reduce energy costs and consumption across state owned and

managed buildings by:– measuring and controlling energy use, – investing in increasing energy efficiency and renewable

energy generation, and – creating an operational environment of excellence.

• Promote energy cost savings across the state through conservation and efficiency in local government and the private sector.

What is EmPower TN?

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2034

2035

-$400,000,000

-$200,000,000

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$43,500,000$100,000,000$150,000,000$200,000,000$57,000,000$57,000,000$57,000,000$57,000,000

$10 $29 $57$95

$142$199

$265$332

$398$464

$532$597

$663$731

$797$864

$930

Investment

Cumulative Renew Production

Cumulative Energy Savings

Cumulative savings years 2-4 reinvested for self sustaining program

$53.9M Annual SavingsAfter Year 8

Energy savings based on 3% EE and 1% operational yielding 4% total renewable production based on 9-to-67MW solar at $0.12/kWh avoided and flat utility rates. Benefit values will be reduced by bond debt repayment.

5

$1B Savings from initial $200M investment with cumulative savings reinvested years 5-8

EmPower TN: Projected Cumulative Utility Cost Avoidance

EmPower TN Management System

6

EmPower TN Task Force Members

• Executive Director, Acting: Robert Balzar

• The University of Tennessee: John Sealy and Robbi Stivers

• Tennessee Board of Regents: Dick Tracy and Keith King

• Department of Environment and Conservation: Molly Cripps, Tom Eck and Lori Munkeboe

• Department of General Services: Reen Baskin, Jay Harrison and John Hull

• Department of Correction: Roger Shaw, Chris Haley and Ken Scalf

• Department of Military: Col. Brad Bishop and Joe Simon

• Financial and Administration: Mike Morrow and John Webb

7

7,000 Monthly

Utility Bills

State Enterprise

Wide Utility Data Mgmt.

System

Decision making

protocol dashboard

and metrics

Identify Energy

Efficiency and Conservation

Projects

Begin behind the meter renewable

energy program

$4.14M Utility Bills Automation and Collection

$2.07M Data to Automation System

$32.5M Energy Efficiency and Conservation Projects1

$5M Renewable Energy ProgramApprox. 2,500 KW1

Utility costs lowered by 4% (about $8M)for next fiscal year

EmPower TN Budget & Value Flow

8

Note 1---may be limited to “Capital Maintenance” work due to budgeted category

9

2016 Budget • $2.1M Data Management System• $4.1M Data Acquisition support• $32.5M Energy Efficiency Improvements

o General Government – all agencies including UT and TBRo General Obligation Bondso Capital Maintenance definitions apply1

• $5M Energy Efficiency and Renewable Energyo Cash FRF projects onlyo Capital maintenance definitions apply1

FY 2016 Budget

Note 1---may be limited to “Capital Maintenance” work due to budgeted category

10

11

Tentative Implementation Schedule

• June - RFP to be finalized with CPO and OIR • Mid July - SBC RFP review/approval • Late July - RFP issued• September - Bids due • Fall - Award and Contracting• Winter - Final recommendation and contract• Early 2016 - Project discovery and implementation

begins

Guest Speakers

12

• Murfreesboro--• Reid Conway– Sr. Energy Services Advisor, TDEC• Joe Whitefield– Assistant Vice President of Facilities--MTSU

• Jackson----• Reid Conway– Sr. Energy Services Advisor, TDEC• Paul Cross– Executive Director Energy Efficiency School Initiative

• Memphis• Reid Conway– Sr. Energy Services Advisor, TDEC• Paul Cross– Executive Director Energy Efficiency School Initiative

State of North Carolina Public Buildings Energy Efficiency Program

State of North Carolina Public Buildings Energy Efficiency Program

The Situation:• Agencies paid their utility bills with no

questions asked• Energy was not viewed as a Manageable

Expense • Usage was rising and so were costs and

NC was in a budget crunch• In 2002 NC spent $213 million on energy

and water

State of North Carolina Public Buildings Energy Efficiency Program

The Solution:

• Then Governor Michael F. Easley sent a memorandum to the Council of State

• With a commission to promote Government Efficiency and Savings on State Spending, including energy, was created

• NC State Energy Office was tapped to guide agencies and administer the program

State of North Carolina Public Buildings Energy Efficiency Program

The Solution -- General Statue § 143-64.10-17 2007

• All State Buildings 20% reduction in BTU/sqft by 2010 from 2002-03 baseline 30% reduction in BTU/sqft by 2015 from 2002-03 baseline

• New State Buildings 30% better than ASHRAE 90.1 2004 edition Major renovations 20% better Commissioning required Life cycle cost analysis required Meter each utility in each building

• All State Agencies and UNC System Institutions Annually Report utility consumption and cost Submit updated Strategic Energy Plan

• All 58 Community Colleges Report annual utility consumption and cost

State of North Carolina Public Buildings Energy Efficiency Program

The Solution:

• NC created a lead by example program for state agencies and universities

• Program encompassesFacilities staffOperations staffEmployeesFaculty and students

State of North Carolina Public Buildings Energy Efficiency Program

The Solution:

• Program is comprehensive and focuses onUtility accountingReviewing and tracking monthly utility billsResolution of billing errorsNegotiation and optimization of rates Operations and maintenanceFacility assessments and audits Identification of possible projects Education, outreach, and training

State of North Carolina Public Buildings Energy Efficiency Program

The Solution:

• Creation of a technical assistance team to educate staff and assist with the management of utility consumption and costs

• The team must to be able to go to the participant to provide assistance

• Performance Contracting and a $500,000,000 revolving cap.

State of North Carolina Public Buildings Energy Efficiency Program

Where is NC now?

• NC has avoided over $900 million dollars in additional utility costs

• NC has reduced BTUs/sqft by 29%• Square footage has increased 89% to

135,000,000 from 71,500,000• Cost of energy is up 51% water is up 212%• NC spent $371,000,000 on utilities 2013-2014

State of North Carolina Public Buildings Energy Efficiency Program

Reid Conway, PEMSenior Energy Services Advisor

Office of Energy Programs615-741-2994

reid.conway@tn.gov

22

TVA

TVA’s EnergyRight Solutions for Business---

23

Energy Efficiency Schools Initiative

Paul Cross--- Executive Director

State of TennesseeEnergy Efficiency Schools Initiative

EmPower TN Application Process

24

25

Project Application Schedule/Process

• Week of June 8-11: 5 Application Workshops; website launch; applications available

• July 24: Application deadline• July 27- Aug 31: Applications scored, Task Force review• Fall 2015: Project selection; Steering Committee review;

and project awards

26

Project Applications

• Applications packets now available: www.tn.gov/empowertn

• Application forms must be signed by agency officer• Submit to: empower.applications@tn.gov

– Describe project, costs, energy savings, avoided utility costs and schedule - follow application manual

– Complete Facility Assessment Form - more detail is better

– Know your assigned point of contact

27

Project Prioritization Criteria

• Initial Criteria (“Go/No Go Gates”)– Building/facility life expectancy – Completion of a facility assessment – Trained staff or employee base for the measures installed

• Primary (100 points with potential bonus scoring up to total 120)– Cost effectiveness (Year Payback/ROI - up to 30 points)– Total energy saved over lifetime (up to 25 points)– Solve deferred maintenance backlog (up to 15 points)– Technology advancement (up to 15 points)– Additional sources of funding (match or leveraged—up to 15 points)

• Scorers Bonus (up to 20 points based on “scorers” discretion)

Summary

• Molly Cripps, Director Office of Enegy Projects, TDEC

• Visit www.tn.gov/empowertn• Download the application today• Submit completed application and supporting

documents to: empower.applications@tn.gov by July 24th

• Contact Bob Balzar, Acting Executive Director with program inquiries: Bob.Balzar@tn.gov

615.253.7816

28

29

Questions?